According to IDC report, the total spending on the Internet of Things in business in 2020 amounted to $3.93 billion. 2020 forced companies to reconsider their investments in IT, and that led to a reduction in IoT spending in Russia. By focusing on providing a secure remote environment for employees, customers, and partners, some companies have postponed their investments in technology.

The same companies that continued to develop already existing initiatives or could launch projects in an unstable work situation have gained a visible advantage in operational processes by analyzing data from IoT solutions and reducing dependence on human resources.

Despite the impact of fluctuations in IoT spending, market growth will be accelerated in 2021 due to digital initiatives from companies from various industries. IDC expects that the country’s market will grow to $8.57 billion in 2025, and the expected compound annual growth rate in 2021-2025 is 16.8%.

In 2020, manufacturing and mining became the leading industries in terms of IoT spending, their combined share is estimated at approximately 30%. These industries are followed by transport and infrastructure, including communications and communal services.

According to IDC, spending on IT and business services among customer companies is about 40%. Service companies help customers develop IoT strategies and develop business scenarios providing business advantages. Also, the growing demand for analytics based on IoT data also requires external expertise in business intelligence.

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